Audioblog #68 – The SNB Starts, and Ends, The Gold “Bear Market”

6 Comments

Andy
on January 16, 2015 at 1:30 am

Ok Andy I got all that….
But where does it go from here? I watched yesterday’s debacle and thought the Swiss were either front running the Greek election, or they know something we don’t.
I still don’t know which one is correct. What surprised me even more than the SNB’s surprise announcement was the market reaction. Golds gains were actually pretty modest considering the implications of what just happened. WTI rose to $49, and the Dow, FTSE, and Euro stocks didn’t seem to move much at all on the news.
So I’m wondering just what it’s going to take to make investors run for the exits.
I can’t see anything positive at all in the economy’s of any western countries, and can’t for the life of me understand why anyone in their right mind would want to invest in these markets.

The Swiss are not looking at any single event – although clearly, the 1/22 ECB meeting and 1/25 Greek votes are terrifying for someone pegging to the Euro. The fact is, per the article I have coming out today, they were overwhelmed by supply of Euros – and had already blown up their balance sheet too high.

Gold’s “gains” were capped, of course, by the CARTEL! C’mon, you know that by now.

But just like the SNB being swamped by reality, and the London Gold Pool in 1968, the Cartel will be overwhelmed by gold/silver demand shortly! Hopefully, this year.

a

Andy
on January 16, 2015 at 7:43 pm

Of course I relalised that Gold was capped, but what surprised me was we didn’t see very much follow through on the following day, I would have thought the shear weight of people running from the Euro would have forced up the gold price regardless of the attempts by the Cartel to keep it down. But it seems not.
On the other hand this whole affair seems more akin to death by a thousand cuts, and who knows which one of the ECB’s bleeding wounds will be the fatal cut.
It’s possible of course that as you say the ECB meeting and the Greek election were just too greater risk for the Swiss to remain pegged to the Euro. But Andy, do you not find it odd that the SNB didn’t even inform the ECB or the IMF? I saw Christine Lagard being interviewed on CNBC
and she was without doubt completely taken by surprise by the move. Could this be now, that it’s Everyman for themselves?

For one, we have NEVER had follow through the following day of ANY positive movement in PMs – per the Cartel “rule” I coined roughly a decade ago, and have written about ad nauseum; i.e. “all great PM days must be followed by horrible ones.” Not to mention, that Thursday’s move was capped via prototypical Cartel Herald algo at the 12:00 “cap of last resort” – turning a $35 gain into a $29 gain; and for silver, a $0.30 gain into a $0.03 gain.

That said, what part of today’s $22/oz gold gain and nearly $0.90/oz silver gain – despite stocks, rates, oil, and the Euro all rising – doesn’t qualify as follow through?

And yes, the process of breaking down the global monetary system has been slower than expected, but hardly so in the big picture. Geez, the Euro is just 15 years old and already collapsing; not to mention, barely two years after it was “saved” by “whatever it takes” jawboning. The Ruble is dead, all the BRICS currencies in freefall (and many others), and even the tiny SNB was able to create a massive firestorm in an already unstable market.

As for “finding it odd” re: the SNB’s movements, I don’t. Frankly, per yesterday’s article, I think they were “overwhelmed by reality” and simply had to ditch the peg NOW to avoid further, catastrophic losses – particularly with next week’s QE announcement, and the following Sunday’s Greek elections coming. They are not “obligated” to inform anyone anyway – and as Bill H. wrote in his article yesterday, the fact that they didn’t even perform this courtesy shows just how desperate they were – and how the global banking Cartel is breaking apart.

Absolutely, every man for themselves! Remember, this is the “final currency war” – in which, everyone loses in the ultimate game of musical chairs. Unless, of course, you own gold and silver.

Andy
on January 17, 2015 at 8:28 am

Thanks for that very informative answer Andy.
And maybe I’m just too optimistic, but I thought a less than 2% move in gold as a follow through seemed pretty modest compared to the 30% rise in the CHF.
But for what it’s worth, I think something bigger may have been at play than just maintaining the peg. I’m sure if they had asked for assistance from the ECB they might have got it, but by bailing out the way they did, and don’t forget the timing in relation to the ECB Meeting and Greek elections, this was an extremely dangerous move to the survival of the Euro.
So maybe as you mentioned in another reply they are simply to stupid to plan a strategy and just react to situations as they happen, or just maybe we can expect something major coming down the pike that they were forwarded about and we don’t yet know about.

I just told you gold was capped prototypically yesterday; so naturally, it was today too. Obviously you haven’t been reading me for the full 11 years I’ve been writing of gold manipulation, as 2.0% is the ultimate upside cap the Cartel utilizes on 99.99% of trading days; and for that matter, 1.0% on 97%.

You are welcome to your views, but after 26 years of being a financial markets expert – and more than ten on Central bank manipulations – I’ve found the Occam’s Razor view to be far more viable than conspiracy theories.

Frankly, it’s insulting that you can say “don’t forget the timing of the ECB meeting and Greek elections,” as I’ve written of them every day this week, and every day for the last month. Trust me, there’s not a soul in the galaxy more aware of such things. Geez.

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